Stock market futures spiked on Monday (May 12) following reports of a new tariffs agreement between the United States and China, CNBC reports.

The Dow Jones Industrial Average futures increased by 997 points, or 2.4%, while S&P 500 futures spiked 2.9% and Nasdaq-100 futures rose 3.8%. The spike came amid reports that the U.S. and China had reached an agreement, which was officially announced to be a 90-day pause in a joint statement "recognizing the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship" after negotiations in Geneva, Switzerland, over the weekend.

"We have reached an agreement on a 90-day pause and substantially move down the tariff levels," Treasury Secretary Scott Bessent said at a Monday press conference in Geneva via ABC News. "Both sides, on the reciprocal tariffs, will move their tariffs down 115%," Bessent said.

U.S. Trade Representative Jamieson Greer added that the reciprocal tariff rate would be maintained at 10% as part of the new agreement.

"Today, with this agreement, we come to agreement that though that our reciprocal tariff rate will go down to 10% on the United States side," Greer said via ABC News. "The Chinese on their side also go down 115% to 10% and they remove the countermeasures that they have in place."

President Donald Trump imposed tariffs of up to 145% on goods imported from China, which led to China issuing retaliatory 125% tariffs on goods exported from America, prior to officials from both sides meeting in Geneva over the weekend. Trump claimed that "great progress" was made, which included "a total reset negotiated in a friendly, but constructive, manner" during the 10-hour negotiations in a post shared on his Truth Social account on Saturday (May 10).

"A very good meeting today with China, in Switzerland," Trump wrote. "Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!"

Trump previously claimed that the 80% tariffs on Chinese goods "seems right" ahead of scheduled high-level discussions between U.S. and Chinese officials to deescalate the ongoing trade war this weekend.

“China should open up its market to USA — would be so good for them!!! Closed markets don’t work anymore!!!” Trump wrote on his Truth Social account Friday (May 9) morning.

“80% Tariff on China seems right! Up to Scott B,” he wrote in a separate post, referencing Bessent prior to the negotiations.

Trump's sweeping tariffs on international goods led to the prices on goods around the world rising, though the president claimed "everybody's gonna be fine" in an ABC News interview last week.

"Well, they did sign up for it, actually. And this is what I campaigned on. I said that we've been abused by other countries at levels that nobody's ever seen before … I could've left it that way, and at some point, there would've been an implosion like nobody's ever seen. But I said, 'No, we have to fix it.' I've -- I've wanted to do this for many years," Trump said when asked by ABC News Senior National Correspondent Terry Moran if he was downplaying concern over the tariffs' impact.

The Afternoon News with Kitty O'Neal